Rolls-Royce progressing and able to offset tariffs – Daily Business

Aero engine maker Rolls-Royce has made a strong start to the year and said it is able to offset the impact of tariffs.

In an update it said all divisions are performing well. Despite the uncertainties associated with tariffs and continued supply chain challenges, the 2025 guidance of £2.7bn-£2.9bn of underlying operating profit and £2.7bn-£2.9bn of free cash flow remains unchanged.

Chief executive Tufan Erginbilgic will tell shareholders at its AGM: “Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business.

“We are creating a more resilient and agile Rolls-Royce that is better equipped to respond to changes in the external environment. As a result, we have had a strong start to the year.

“The recently announced global tariff increases have created a degree of uncertainty for the industry. We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking.

“We are closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions. Good progress on our transformation and the actions we are taking give us confidence in our guidance for 2025.”

The company said it is continuing to strengthen its balance sheet, enabled by a more resilient and growing cash delivery.

“Our efforts have been further recognised by the credit rating agencies, who all hold us at investment grade with a positive outlook, with upgrades to BBB+ by Fitch and to Baa2 by Moody’s. We are making good progress with our £1bn share buyback, having completed £138m by the end of March.”

The group will announce half-year figures on 31 July.